International Journal of Management and Enterprise Development (19 papers in press)
Early Stages of Service Business Review and Synthesis
by Matti Muhos, Martti Saarela, Anna-Mari Simunaniemi, Del Foit Jr., Lada Rasochova
Abstract: Many stage models have been introduced to clarify management priorities during the early stages of business growth. However, many of these models are conceptual and universal, providing only limited benefits to specific industries and business contexts. The early stages of technology-based ventures have attracted interest, while little attention has been paid to the early stages of service-based firms. This study examines the early stages of growth in service-based firms. The following research questions are posed: What are the basic characteristics of recent empirical studies on the early stages of service-based firms? What are the themes and sequential patterns in the early stages of service-based firms as revealed in the recent empirical literature? This study provides a meta-analytical review designed to answer the research questions. A group of recent empirical stage models of the early stages of service-based business was selected for meta-analysis and synthesis. The meta-analysis integrates the findings of these models and introduces a self-evaluation framework for the early stages of service-based companies.
Keywords: enterprise development; growth management; stages of growth; growth process; service-based firm; business development; meta-analysis; review.
Heuristics of the Internationalisation of SMEs: A Grounded Theory Method
by Hossein Khorrami, Mohammad Zarei, Behrouz Zarei
Abstract: Heuristics can be a useful and applicable tool, utilised in simplified strategies for solving ill-structured and highly uncertain problems, such as internationalisation of Small-and Medium-Sized Enterprises (SMEs). International Entrepreneurship (IE) researches suggest that, paying more attention to discovering the valuable individual initiatives used in internationalisation of SMEs. This paper investigates the Iranian internationalised SMEs to provide a set of heuristic principles and guidelines for running a successful internationalisation process. Analyses of the interview data suggest that, heuristics is an instructional tool of internationalisation, which facilitates and subsequently accelerates the process of SMEs internationalisation. The model of internationalisation based on heuristics is extracted from the systematic grounded theory (GT). Originally, GT was applied for increasing the chance of discovering the unanticipated happenings as an inductive theory-discovering methodology. From the research, it can be concluded that by applying the heuristics-based model of internationalisation, SMEs can make significant contributions in IE such as position stability in foreign markets, problem-solving tools in internationalisation process, sales growth, profitability, as well as added value generation.
Keywords: Internationalisation; Heuristic principle; Grounded theory; International entrepreneurship; Small-and Medium-Sized Enterprises (SMEs)
Analysing innovation-driven enterprises stakeholders in two spatial ICT ecosystems
by Jukka Majava, Tuomo Kinnunen, Del Foit, Pekka Kess
Abstract: Innovation-driven enterprises (IDEs) engage with various stakeholders during new product development and commercialisation. Spatial ecosystems in which these enterprises operate provide them with the local business environment for new innovation development. Our study analyses IDEs stakeholders in two spatial information and communication technology (ICT) business ecosystems: one in San Diego, California, USA and the other in Oulu, Finland. The study analyses the stakeholders presence and their roles to support innovation. The critical stakeholders for supporting innovation-driven enterprises, such as providers of different forms of capital and research institutes, are identified. Our findings suggest that IDEs should exploit the spatial ecosystems by interacting with various stakeholders and by gaining access to local resources to create new innovations. The results of the study are beneficial both for managers of new innovation-driven ventures and decision-makers designing and implementing innovation policies.
Keywords: innovation; business ecosystem; stakeholder; innovation-driven enterprise (IDE); spatial context; information and communication technology (ICT)
Network visualizations of knowledge assets: their value and user experiences for innovation development
by Martha Russell, Kaisa Still, Jukka Huhtamäki
Abstract: This paper explores the value of network visualizations for presenting complex knowledge assets to executive decision makers in order to develop culturally-relevant insights for program development. The value is first addressed with an analysis of network visualization process called Ostinato, an operational context in relation to cognitive fit as a theoretical context. Then value is explored with an analysis using taxonomy of interactive dynamics for visual analytics. Further evaluating the usability of visualization is conducted in the context of the Parisian ecosystem, with board members using network visualizations to explore complex multi-layered knowledge about relationships among key executives, companies, and financing organizations. All findings support the argument that value of knowledge assets in problem-solving performance depends on both format of the data and nature of the task. Furthermore, the findings support the importance of continual involvement and interaction between data analysts and decision makers; they highlight the importance of considering knowledge assets as value drivers that can support knowledge-based innovation.
Keywords: network visualization; user experience; visual analysis tool; visual analytics; innovation development; ecosystem.
Manufacturing strategies in different environments: Does equifinality or a dominant strategy exist?
by SHAOHAN CAI
Abstract: This study addresses two essential issues related to equifinality: (1) whether firms can choose different but equally effective manufacturing strategies for different environments (equifinality) and (2) whether there is one strategy adopted by more firms than others (dominant strategy) in each individual environment. With data collected from 434 Chinese manufacturing companies, this study identifies a four-cluster taxonomy of business environments (harsh, labor munificent, stable, and low-cost) and a four-cluster taxonomy of manufacturing strategies (mass servers, marketeers, manufacturing emphasizers, and low emphasizers). The analyses show that dynamism and munificence exert joint effects on equifinality and the existence of a dominant strategy.
Keywords: Manufacturing strategy; Taxonomy; Equifinality; China.
Key Elements for Achieving an Enterprises Performance in the Areas of Sustainability
by Kongkiti Phusavat, Chavatip Chindavijak, Sasivimol Meeampol, Pekka Kess, Achmad Nizar Hidayanto
Abstract: The study aims to confirm the key elements for an enterprises performance in the areas of sustainability. These element (anticipation, concern, leadership, communication, capability, planning, execution, performance, and report.) have been earlier derived from the previous study which is based on the literature reviews, and the interviews with the researchers and practitioners from Thailand and Finland. The focus-group and survey approaches are applied for this confirmation or verification. For the focus-group approach, there were altogether 30 participants while there were 504 enterprises completed the questionnaire. After analyzing the results with the criteria, the nine key elements are deemed to reflect the term sustainability. They provide the premise for an enterprise to consider when attempting to deal with the term sustainability. Sustainability has been viewed as the next step to ensure long-term business competitiveness for an enterprise after productivity and quality, environment, occupational safety and health, and corporate social responsibility.
Keywords: Enterprise performance; enterprise development; sustainability.
How Malaysian Managers Persuade Employees Innovative Behavior
by Hadi Farid, Fatemeh Hakimian, Mohd Nazari Ismail
Abstract: The intention of this paper was to examine the impact of 6 selected leaders behaviors on employees innovative behavior through the mediating role of Leader-Member Exchange. A total number of 155 pairs of employees and their immediate managers were participated in this study. Employees rated their immediate managers behaviors and managers evaluated their subordinates innovative behavior. Both managers and employees answered to LMX-MDM for the purpose of evaluation of their exchange relationship. Then, the agreements of employees and managers rating of LMX were applied based on the results of WABA. The obtained data were analysed through SEM-PLS. The findings revealed the significance of mediating role of LMX in relationship between behavior of recognizing, taking risks for change and paternalistic with employees innovative behavior. Thus, this study has contributed to leadership literature in addition to providing a clear vision for Malaysian managers to increase employees innovative behavior via improving exchange relationship.
Keywords: employees’ innovative behaviour; leaders’ behavior; leader member exchange; within and between analysis.
CHARACTERIZATION OF CSR PRACTICES IN SPANISH SMEs THROUGH A CLUSTER ANALYSIS
by María Paula Lechuga Sancho, Manuel Larran Jorge, Jesús Herrera Madueño
Abstract: Small and medium-sized enterprises (SMEs) are the main driving force in European economic growth and as such this research aims to provide an insight into SME CSR practices. Within this scope, the objective is to analyze the level of development of SR practices for a sample of 509 Spanish SMEs, and the impact that certain explanatory factors such as size, sector, ownership structure or genre of the manager have on the level of implementation of sustainable practices. The main results of this study reveal that CSR has already been incorporated into the daily management of such companies being these practices essentially internally focused. Also, our results imply further evidence confirming the statements of many authors who have pointed out the sector, size and being women at charge of a firm, as key explanatory factors which affects the company in adopting and implementing CSR practices in the strategic plans of SMEs.
Keywords: Corporate social responsibility; Small to medium-sized enterprises; Empirical research; Cluster analysis; Spain.
Strategic alignment of Product Portfolio and Supplier Management
by Jordan Verrollot, Arto Tolonen, Janne Harkonen, Harri Haapasalo
Abstract: Product Portfolio Management (PPM) and Supplier Management (SM) are integrally linked through products, buy items and related suppliers. However, the connection and alignment between these important activities are not particularly highlighted in the extant literature. Hence, the main objective of this study is to clarify the challenges in connecting PPM and SM to illustrate how they can be aligned. This study recognises and links the roles of PPM and SM to analyse and manage the technical product portfolio, buy items and suppliers according to aligned strategic targets. PPM impacts the performance of SM by regularly renewing the product portfolio, and therefore allowing SM to manage only the buy items and related suppliers that create the highest strategic fit, maximised value and balance for the company. This study recognises the need to align PPM and SM to enhance competitiveness and to focus on the strategic and profitable products and associated suppliers.
Keywords: product portfolio management; supplier management; supply management; strategic alignment.
Analyzing the Online Wine Tourism Strategies of American and Italian Wineries
by Roblyn Simeon, Lutfus Sayeed, Alberto Onetti, Marco Talaia
Abstract: As competition intensifies in the global wine market, online wine tourism has become a crucial marketing dimension for wineries and wine regions around the world. This paper presents and extends the proven AIPD framework for examining the strategic orientation of winery web sites. Two nations that are at the forefront of the competition between old world and new world wines are the USA and Italy. Qualitative & quantitative analyses showed that American wineries were generally better at projecting a wide range virtual branding characteristics. Italian wineries were better at the attracting dimension and they focused mainly of local characteristics.
Keywords: California & Italian wineries; online wine tourism; AIPD; virtual branding; wine marketing strategies; international business management.
Enhancing corporate entrepreneurship: An empirical test of Stevenson's conceptualisation of entrepreneurial management
by Kamal Sakhdari, Jahangir Yadolahi Farsi
Abstract: While Stevenson's conceptualisation of opportunity-based entrepreneurial management is widely utilised and cited, less theoretical and empirical attention has been given to this framework in relation to corporate entrepreneurship (corporate entrepreneurial outputs), reflecting a firm’s intensity of engagement in innovation in products and services, venturing activities and strategic renewal. We hypothesised the impact of the sub- dimensions of entrepreneurial management on corporate entrepreneurship. Our observation of 298 firms providing products and services to the mining industry of Australia and Iran indicates that the underlying dimensions differently affect corporate entrepreneurship. The results also provide useful insights into the boundary conditions of Stevenson's notion of opportunity-based management style.
Keywords: Entrepreneurial management, corporate entrepreneurship, mining industry, survey
Contesting the underperformance thesis of women entrepreneurs: firm-level evidence from South Africa
by Colin Williams, Abbi Kedir
Abstract: This paper provides one of the first known evaluations of whether enterprises in which women are owners underperform male-owned enterprises in the developing world. Until now, the widespread assumption, mostly from developed world studies, has been that enterprises in which women are owners underperform male-owned enterprises. To evaluate this in developing countries where there is a dearth of studies, cross-sectional data is reported from a 2007 World Bank Enterprise Survey (WBES) of 937 South African enterprises. The finding is that enterprises that are women-owned or jointly owned by men and women perform better than those owned solely by men, after controlling for other determinants of firm performance as well as potential sample selection bias. The outcome is a call to transcend the underperformance thesis regarding women entrepreneurs and for greater resources to be devoted to the promotion of women’s entrepreneurship and women’s involvement in firm ownership.
Keywords: entrepreneurship; enterprise development; gender; firm performance; development economics; South Africa.
ENTRY-BASED FINANCIAL STATEMENT ANALYSIS FOR SMALL FIRMS
by Erkki K. Laitinen
Abstract: The objective is present an entry-based approach to small business financial statement analysis. This approach is based on a procedure where financial statements are prepared after each bookkeeping (double) entry. This kind of procedure provides the management in a small firm with an opportunity to control in real time how the annual financial statements (income statement and balance sheet) are formed up from successive bookkeeping entries with the passage of time. The approach can also be used to warn about financial crisis or to direct attention to most important transactions. It is also a useful tool for small business auditors. The procedure is demonstrated by a case study based on an entry-based bookkeeping material from a Finnish micro firm. Probability of bankruptcy is used in this case to warn about financial crisis whereas a balance sheet decomposition (information) measure is employed to reflect the most important bookkeeping entries.
Keywords: Financial statement analysis; bookkeeping; small firm; bankruptcy probability; decomposition measure; auditing
Special Issue on: Behavioural Issues in Family Enterprises
PSYCHOLOGICAL CONTRACT AND SOCIAL EXCHANGE IN FAMILY FIRMS
by Timothy Madden, Laura Madden, Jason Strickling, Kimberly Eddleston
Abstract: This study tests a social exchange theory model that links firm family members transactional and relational psychological contract obligations to firm performance. Evidence supports the hypotheses that organizational obligations are antecedents of individual contributions to firm performance in the psychological contract model. When family firms meet the employees perceived obligations to their employees, the employees meet their perceived obligations to their employers. Participative decision making and succession planning are of particular importance to maintain transgenerational control and evidence is found to support succession planning as fully mediating the relationship between participative decision making and firm performance.
Keywords: social exchange theory; psychological contract; family firms; participative decision making; succession.
Success Factors of Polish Family Businesses
by Krystyna Kołodko, Elżbieta Weiss, Agnieszka Bitkowska, Sabina Knauf, Krystyna Leszczewska
Abstract: This article presents the results of a study carried out among family businesses operating in Poland. It is intended to supplement previously generated knowledge in the area of the operation of family businesses in the specific socio-economic and legal conditions in Poland. The objective was to collate the opinions of entrepreneurs regarding the need for visibility of the family and the family business status in business relations and the marketing activities of enterprises. The data was collected using in-depth interviews with the Polish family business owners. This paper outlines the conclusions of the study with respect to success factors such as: the trust among the family members, flexibility and adaptability to changing market conditions or the ability to act flexibly and quickly, adapt to changes in the environment and success-hindering factors for Polish family firms such as: the financial challenges borne by employers like taxes and social security costs or the instability of the law.
Keywords: Polish family firms; success factors; success-hindering factors.
FAMILY BUSINESS GOALS, CORPORATE CITIZENSHIP BEHAVIOR AND FIRM PERFORMANCE: DISENTANGLING THE CONNECTIONS
by Claudia Astrachan Binz, Keith E. Ferguson, Torsten M. Pieper, Joseph H. Astrachan
Abstract: Prior research has suggested that family businesses may have a higher proclivity to behave as good corporate citizens, as compared with non-family firms, which may impact financial performance. However, while this idea is intuitively appealing, the actual antecedents of corporate citizenship behavior in the family firm context have not yet been assessed systematically. In addition, empirical evidence regarding the impact of citizenship behavior on firm performance remains inconclusive. Drawing from literature on family business goals and corporate citizenship, our conceptual framework proposes that family-centered and business-centered goals act as determinants of family firm citizenship; but each with a different impact. Furthermore, we argue that family firm reputation partially mediates the relationship between family firm citizenship behavior and family firm performance. We discuss implications for family business research and practice and offer suggestions for future studies.
Keywords: Family Business; Goals; Corporate Citizenship Behavior; Reputation; Firm Performance.
TIME TO RECALIBRATE? EXPLORING ENTREPRENEURIAL ORIENTATION OF FAMILY BUSINESSES BEFORE, DURING, AND AFTER AN ENVIRONMENTAL JOLT
by G. Tyge Payne, Curt Moore, Jennifer Sexton
Abstract: Entrepreneurial orientation (EO) has become a construct of considerable interest in the family business literature. Despite such attention, scholars have yet to examine if and how EO in family businesses changes over time. This study explores this gap by investigating both continuous and discontinuous change in EO in a sample of S&P 500 family businesses between 2001 and 2012. We find that EO changes before, during, and after an environmental jolt, which is defined as a major unforeseen and discontinuous environmental change. More specifically, we find that EO gradually increases at a linear rate prior to the occurrence of a jolt, discontinuously decreases during the initial stage of the jolt, then resumes a gradual linear growth trend following this period. We further explore the relationship between time and EO by examining change in EO across different industries, finding significant changes between family firms in different industries.
Keywords: Family Business; Entrepreneurial Orientation; Temporality; Time; Crisis; Discontinuous Change.
Internationalization of Publicly Traded Family Firms: A Transaction Cost Theory Perspective and Longitudinal Analysis
by Esra Memili, Kaustav Misra, James Chrisman, Dianne Welsh
Abstract: There has been a prominent stream of research investigating internationalization of organizations. While the importance of transaction costs in the governance decisions of firms has been well established in the literature, transaction cost theory (TCT) in family firms remains under utilized. We examine the impact of family governance (i.e., family ownership and familys involvement in management and board) on internationalization within the domain of TCT on 386 of S&P 500 firms. Our findings indicate an inverted U-shaped relationship between family ownership and internationalization and a u-shaped relationship between familys involvement in management and board and internationalization. This illustrates the interesting differential impact of family involvement components on internationalization. We conclude by discussing future research and implications for practice.
Keywords: Transaction Cost Theory; Internationalization; Family Firms; Family Ownership; Family Management
Raising Entrepreneurs: Can Parenting Style Amplify Entrepreneurial Intentions and Behavior?
by David Jiang, Scott Hayward, M. Lane Morris
Abstract: Over a decade ago, Aldrich and Cliff (2003) argued that researchers have unnaturally separated the social institutions of family and business, calling for more exploration of the pervasive effects of family on entrepreneurship. Recent research has started to explore these effects within a family business context but scholars still do not know much about how other family environments influence entrepreneurship. Using a family systems theoretical perspective, this conceptual paper addresses how developmental aspects of parenting and family environments, both inside and outside a family business context, contribute to the expression of entrepreneurial intentions and behaviors in adulthood. The most theoretically novel aspects of this paper focus on how family business contexts amplify links between entrepreneurial intentions and behaviors.
Keywords: entrepreneurial intention; parenting style; family business; family systems; entrepreneurship; authoritative; authoritarian; attachment style.